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Swissco signs agreement to transfer listing status by scheme of arrangement

MAINBOARD-LISTED marine company Swissco Holdings - which is under judicial management - inked an implementation agreement on Friday to transfer its listing status to Plus Renewable Technologies through a scheme of arrangement, the judicial managers have announced.

Plus Renewable, a renewable energy developer and asset manager incorporated in the Cayman Islands, will pay for the proposed transfer through the issuing of shares valued at S$6 million.

"The company is presently under judicial management and its shares are suspended from trading. One of the company's major intangible assets is its listing status," Swissco noted in its announcement.

"The proposed transfer, if successful, seeks to provide some recovery to its shareholders and its creditors."

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The judicial managers added that the proposed scheme "potentially offers better returns for shareholders and creditors, compared to a liquidation scenario", as it would be unlikely for there to be any value left for distribution to shareholders after payment to the creditors, if Swissco's assets were to be liquidated.

The latest move comes after a non-binding letter of intent was signed in August. The long-stop date of the agreement is July 31, 2019, or any other date that Swissco and Plus Renewable agree on in writing.

Swissco's judicial managers cautioned that the proposed transfer and listing are subject to meeting various conditions precedents, and there is no certainty as to whether they can or will proceed.